Compound Interest Ques 4
Question
The simple interest (p.a.) accrued on an amount of Rs. 17,000 at the end of four years is Rs. 6,800 . What would be the compound interest (compounded annually) accrued on the same amount at the same rate after two years?
(1) Cannot be determined
(2) Other than those given as options
(3) Rs. 3,570
(4) Rs. 3,260
(5) Rs. 3,980
(IBPS Bank PO/MT CWE-V Main Exam. 31.10.2015)
Show Answer
Answer: (3)
Solution: (3) Rate = $\frac{S.I. \times 100}{Principal \times Time}$
$=\frac{6800 \times 100}{17000 \times 4}$
$=10 \%$ per annum
$\therefore$ C.I. $=P\left[\left(1+\frac{R}{100}\right)^{T}-1\right]$
$=17000\left[\left(1+\frac{10}{100}\right)^{2}-1\right]$ $=17000\left[\left(\frac{11}{10}\right)^{2}-1\right]$
$=17000 \times\left(\frac{121}{100}-1\right)$
$=17000 \times \frac{21}{100}=$ Rs. 3570
BETA
